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By Matthew Russell Lee, Patreon Maxwell Book
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SDNY / SOUTH BRONX, August 21 – Seemingly oblivious to US regulators stated desire to tighten up their merger review rules, specifically on fair lending, Toronto Dominion on February 28 announced a $13.4 billion proposal to buy First Horizon.

 Fair Finance Watch has been concerned by TD Bank's lending disparities for some time. Nationwide in 2020, TD Bank denied almost as many applications from African Americans (833) as it made in mortgage loans to African Americans (853). It was far more generous with white borrowers: 23,469 loans made, with only 9009 denials. 

 Fair Finance Watch immediately online noted that in New York State in 2020, TD Bank was even worse. It denied more mortgage applications from African Americans (255) that it made loans to African Americans in NYC (198). Again, TD Bank was far more generous with white borrowers in NYS: 3,558 loans made, with only 1714 denials. 

 Fair Finance Watch said: but just as the Federal Reserve begrudgingly is holding a public hearing on US Bancorp - MUFG / Union Bank, on March 8, there is even more reason to hold multiple hearings on a large and disparate Canadian bank buying Horizon.

Now even more so, as the arrogance of Toronto Dominion is on full display: "1. Toronto-Dominion Bank's $1.3 billion move for Cowen underscores that the Canadian lender wants more of the US investment-banking pie. Riaz Ahmed, TD Securities' group head for wholesale banking said one pressing question when determining an acquisition was finding a target with "complementary skills."   "It's difficult to time things exactly to where the markets are. When you have a long view of the business, then really what you're looking for is — can you find a party that has complementary skills, and then you worry less about the timing," Ahmed said.

Here was Fair Finance Watch / Inner City Press prepared testimony on Toronto Dominion / First Horizon - it was added to the fly, watch this site:

Good morning. I'm Matthew Lee and on behalf of Fair Finance Watch and Inner City Press, this three minute statement concerns the proposal by Toronto Dominion to acquire First Horizon.

 I first want to thank the Fed and the OCC for having this public meeting. I think this should come to be expected on mergers of this size and even mid-size mergers. I'd also like to encourage both agencies to have comment periods on Requests for Information to consider your merger review process as the FDIC did; the 99 percent or higher approval rate calls the credibility of review into question. 23 is kind of a bottom-line. It's good that you're listening to people. At the same time, if the conclusion is a fait accompli, it's a problem.  

 Proof that banks don't take these reviews seriously? Toronto Dominion, even with this pending, and calls by Senators and Congressmembers to block their proposed acquisitions, made another one: of Cowen, to "bulk up," as the business media put it. 

  If there are serious enough issues on Toronto Dominion to trigger rare complaints from Congressmembers and this still-to-rare regulatory public meeting, how can TD - Cowen sail through without similar review? Just as there is a recognition that the Community Reinvestment Act must be modernized, it is time to modernize the implementation of the Bank Holding Company Act and Bank Merger Act so that billion dollar proposals like TD-Cohen are subject to meaningful public review. 

 To the business media, TD spokesperson Lisa Hodgins has emailed bragging that "community leaders from regions served by the two banks having sent more than 300 letters in support of the merger to regulators." To some, this echoes the practices of Joseph Otting at One West. And what about the practices, including those highlighted by four members of Congress requesting that this merger be rejected?

Now, as to the Community Reinvestment Act aspects proposed acquisition by Toronto Dominion of First Horizon. Before getting to the HMDA data, note for the record that the Consumer Financial Protection Bureau had an active investigation of TD Auto Finance - until it was mysterious quashed.  Here are a few consumer complaints:

F.U. TD Auto Finance How do you put a lien on a car that was never financed and was bought and paid for? Then when a person calls you all and spends 6 hours  trying to get it taken care of and you can't understand the level frustration I have for

and to check your TD Auto Finance loan/balance/remaining term, you must have a personal TD bank account also (to register). Nobody does awful, archaic banking like Canada

 The agencies must get to the bottom of this, and the matters timely raised by the members of Congress. 

Nationwide in 2020, TD Bank denied almost as many applications from African Americans (833) as it made in mortgage loans to African Americans (853). Significantly, TD Bank grew worse and more disparate in 2021: 1142 denials to African Americans, versus only 886 originations.    It was far more generous with white borrowers: in 2020, 23,469 loans made, with only 9009 denials. In 2021, 20,515 originations with only 8362 denials.

  In New York State in 2020, TD Bank was even worse. It denied more mortgage applications from African Americans (255) that it made loans to African Americans in NYC (198). In 2021 in New York State, TD Bank denied 294 applications from African Americans while making only 231 loans. Again, TD Bank was far more generous with white borrowers in New York State: in 2020, 3,558 loans made, with only 1714 denials; in 2021, 3372 loans made and only 1430 denials.  These disparities should not just result in a Fed footnote that the data cited by Fair Finance Watch is accurate but HMDA data is not probative. The recently confirmed Governors, particularly the most recent confirmee Michael Barr, should go on the record on this before the Board rules.    

 These issues must be addressed; on the current record, this application - and TD / Cohen - should not be approved

Inner City Press will be inquiring under the Freedom of Information Act. Watch this site.  

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